© 2025 CLEAN HARBORS Forward Looking Statements and GAAP Disclaimer Fourth-Quarter and Full-Year 2025 Investor Review February 18, 2026 These slides contain (and the accompanying oral discussion will contain) forward-looking statements, which are generally identifiable by use of the words "believes," "expects," "intends," "anticipates," "plans to," "seeks," "will," "should," "estimates," "projects," "may," "likely," "potential," "outlook" or similar expressions. Such statements may include, but are not limi ...

Wall Street analysts forecast that Clean Harbors (CLH) will report quarterly earnings of $1.61 per share in its upcoming release, pointing to a year-over-year increase of 3.9%. It is anticipated that revenues will amount to $1.46 billion, exhibiting an increase of 1.7% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Pri ...

Core Insights - Clean Harbors Inc. (CLH) shares have increased by 7.1% over the past month, outperforming the industry's slight rise, with fourth-quarter 2025 earnings expected to grow by 3.8% year over year [1][9] Group 1: Revenue Growth and Market Demand - CLH's revenue growth is fueled by increasing demand for environmental compliance and waste management solutions from businesses, particularly in manufacturing, healthcare, and energy sectors [2] - The company benefits from long-term service contracts due to its expertise in hazardous waste disposal and environmental cleanup [2] Group 2: Competitive Edge and Innovations - Clean Harbors plans to construct a state-of-the-art process plant using a solvent de-asphalting process combined with existing hydro-treating capabilities, which is expected to enhance its competitive position [3] Group 3: Financial Health and Shareholder Value - The company's current ratio at the end of Q3 2025 was 2.44, significantly higher than the industry average of 0.98, indicating strong liquidity and the ability to meet short-term obligations [4] - CLH has consistently returned value to shareholders through share repurchases, totaling $55.2 million in 2024, $51.1 million in 2023, and $50.2 million in 2022, reflecting confidence in its business [5]

Core Insights - Clean Harbors is currently valued at $257 per share with a P/E ratio of 35.6, significantly higher than typical industrial stocks, indicating market expectations of future growth beyond the 1.3% quarterly revenue growth reported in Q3 2025 [1] PFAS Catalyst - Clean Harbors secured a $110 million contract for PFAS water filtration at Joint Base Pearl Harbor-Hickam, showcasing its comprehensive PFAS solution that includes lab analytics, water filtration, site remediation, and high-temperature incineration disposal [2] - CEO Eric Gerstenberg highlighted the effectiveness of the company's high-temperature incinerators in safely destroying PFAS at a cost-effective scale, supported by an EPA study confirming commercial-scale destruction capabilities [3] - Management anticipates PFAS revenue to reach $100-120 million in 2025, reflecting a year-over-year growth of 20-25%, with a quarterly pipeline growth of 15-20% [3] Infrastructure Moat - Clean Harbors has $2.74 billion in property, plant, and equipment, with 36% of total assets invested in landfills, incinerators, treatment facilities, and transfer stations [4] - The incineration utilization rate reached 92% in Q3 2025, up from 89% the previous year, indicating strong pricing power due to near-capacity operations and mid-single-digit pricing growth [4] Financial Performance - The Environmental Services segment has achieved 14 consecutive quarters of year-over-year margin expansion, with an adjusted EBITDA margin of 20.7% in Q3, and management aims for margins to reach 30% [5] - Despite these strengths, Clean Harbors missed Q3 estimates by 6.8% on EPS and 1.9% on revenue, with Industrial Services revenue declining by 4% and Field Services down 11% due to deferred maintenance and lack of emergency response projects [6] Future Outlook - Management does not expect a significant recovery in Industrial Services until the spring 2026 turnaround season, and insider selling of shares raises concerns about confidence in the near-term outlook [7] - The company is investing $210-220 million in a new SDA unit, targeting $30-40 million in annual EBITDA by 2028, indicating a commitment to vertical integration [8] - The high P/E ratio of 35.6 suggests that the market is pricing in near-perfection, with the valuation dependent on the realization of PFAS regulatory tailwinds and recovery in Industrial Services [9]

Core Insights - Clean Harbors is recognized as a leading provider of environmental, industrial, and hazardous waste management services across North America, showcasing a strong track record and a favorable long-term growth outlook [3]. Company Overview - The presentation format includes a 10 to 15-minute overview from Clean Harbors, followed by a Q&A session moderated by the research analyst [2]. - The management team present includes Eric Dugas, Executive Vice President and CFO, and Jim Buckley, Senior Vice President of Investor Relations [3].

Clean Harbors Conference Call Summary Company Overview - **Company**: Clean Harbors - **Industry**: Environmental, Industrial, and Hazardous Waste Management - **Revenue**: Expected to finish 2025 with approximately $6 billion in revenue [4] - **Employees**: Approximately 24,000 across North America [4] - **Operating Segments**: - Environmental Services (ES): Approximately $5 billion in revenue [5] - Safety-Kleen Sustainability Solutions (SKSS): Approximately $1 billion in revenue [5] Key Business Segments Environmental Services Segment - **Technical Services**: Expected to generate about $1.7 billion in revenue in 2025 [6] - Largest owner/operator of hazardous waste incinerators in North America, operating 10 out of 14 licensed incinerators [7] - Significant growth in project work, particularly in remediation and PFAS-related services [8] - **Safety-Kleen Environmental Services**: Similar to technical services, focusing on small to medium businesses [9] - Grew approximately 10% annually, with 7% growth in the latest quarter [10] - **Field Services**: Another billion-dollar business unit, slower growth expected in 2025 due to fewer large emergency response jobs [11][12] - **Industrial Services**: Revenue expected to be around $1.3-$1.4 billion, facing cost pressures from refinery and chemical customers [13][14] Safety-Kleen Sustainability Solutions (SKSS) - Focuses on the collection and recycling of used motor oils [16] - Expected to generate about $140 million in EBITDA in 2025, down from previous highs due to falling base oil prices [17] Growth Opportunities - **PFAS Market**: Anticipated growth of 15%-20% annually, with $120 million in PFAS-related work in 2025 [19] - **New Incinerator in Kimball, Nebraska**: Expected to contribute $10 million in EBITDA in 2025, with projections to double in 2026 [20][36] - **Reshoring Activity**: Increased demand for hazardous waste management as reshoring projects generate waste [19] Financial Performance - **EBITDA Margins**: Expected to be around 26% in 2025, a 70 basis points improvement from the previous year [28] - **Revenue Growth**: Revenue growth at 4%, with EBITDA growth nearly double that rate [32] - **Cost Management**: Continuous focus on cost savings and operational efficiencies [32][33] Market Environment - **Tariff Uncertainty**: Previous uncertainties have eased, leading to increased customer production discussions for 2026 [24] - **Crack Spreads**: Improvement in crack spreads expected to benefit refinery customers and increase capital spending [24] Technology and AI Integration - Clean Harbors is leveraging AI and technology to improve operational efficiencies and drive revenue growth [33][26] Regulatory Landscape - Anticipated guidelines from the Department of Defense regarding PFAS disposal at military installations [40] - Ongoing developments in EPA regulations and state-level PFAS legislation [42] Conclusion - Clean Harbors is well-positioned for future growth and profitability, with a strong focus on environmental services and emerging market opportunities like PFAS management [46]

Company Overview - Clean Harbors is participating in the 28th Annual Needham Growth Conference, indicating its engagement with investors and the market [1] - The presentation features Co-CEO Mike Battles and SVP of Investor Relations Jim Buckley, highlighting the company's leadership presence [1] Industry Context - The Needham Growth Conference serves as a platform for companies in the industrial technology space, suggesting a focus on growth and innovation within this sector [2]

Clean Harbors Conference Call Summary Company Overview - **Company**: Clean Harbors - **Event**: 28th Annual Needham Growth Conference - **Presenters**: Co-CEO Mike Battles, SVP Jim Buckley Key Points Industry and Business Segments - Clean Harbors operates primarily in the environmental services and oil business sectors, with total revenue exceeding $6 billion in 2025, of which approximately $1 billion is from the oil business and $5 billion from environmental services [3][8]. Oil Business Performance - The oil business has seen a significant decline from $300 million to approximately $140 million due to falling oil prices and market challenges [4]. - The company shifted focus to collecting high-value used motor oil (UMO) instead of volume, leading to improved profitability despite lower collection volumes [5][6]. - The goal for 2026 is to stabilize the oil business and make it less volatile [6]. Environmental Services Business - The environmental services segment is performing well, with a 12% revenue growth in Q3 and 7% growth over the first nine months of 2025, driven by price increases and volume [9]. - The technical services (TS) business, which includes PFAS remediation, is expected to continue its growth trajectory, with pricing discipline being a key factor [10][25]. - The Safety-Kleen branch, focusing on small quantity hazardous waste, has also shown consistent growth of 7% over the past several years [11]. Industrial Services Challenges - The industrial services segment, valued at approximately $1.3 billion, has faced challenges with negative revenue growth of 5% due to delayed turnarounds in large plants [12][13]. - Leadership changes are anticipated to improve performance in this segment, with hopes of stabilizing revenue in 2026 [14]. PFAS Remediation - PFAS-related services are projected to grow at 20% annually, with Clean Harbors positioned as a leader in high-temperature incineration for PFAS disposal [27][30]. - Recent engagements with regulatory bodies and successful projects, such as the one in Hawaii, are expected to enhance growth in this area [36][37]. Pricing Strategy - Clean Harbors maintains a disciplined pricing strategy, with annual contract renewals allowing for price adjustments based on inflation and market conditions [55][57]. - The company has successfully navigated price negotiations, achieving mid-single-digit price increases [57]. M&A and Growth Strategy - Clean Harbors has a strong cash position with $1 billion available and plans for share buybacks, indicating a focus on shareholder value rather than aggressive M&A [58]. - The company is exploring smaller acquisitions in the environmental services space, particularly targeting privately owned businesses [62][63]. Internal Investments - Significant investments are being made in infrastructure, including the Kimball incinerator, which is expected to generate $20-$30 million in EBITDA in 2026 [40][41]. - The company is also developing mega hubs to enhance operational efficiency and margin improvement [71][73]. Future Outlook - Clean Harbors is optimistic about stabilizing its industrial services segment and continuing growth in environmental services and PFAS remediation [14][27]. - The company aims to leverage its strong market position and operational efficiencies to drive future profitability [25][66]. Additional Insights - The leadership emphasizes the importance of maintaining high margins and operational efficiency across all business segments [26][72]. - The company is cautious about the timing of potential captive incinerator closures, recognizing the long-term commitment involved [48][50]. This summary encapsulates the key insights and strategic directions discussed during the Clean Harbors conference call, highlighting both challenges and growth opportunities within the company and its industry.

Core Insights - The global medical waste management market is projected to grow from US$9.2 billion in 2023 to US$12.2 billion by 2028, reflecting a CAGR of 5.9% [1] - The increase in healthcare activities, stricter compliance mandates, and sustainability priorities are driving demand for advanced medical waste management solutions [1][2] Market Overview - The market is experiencing growth due to a sharp increase in healthcare waste volumes generated by hospitals, diagnostic laboratories, and other healthcare facilities [2] - The rising global demand for healthcare services, driven by chronic diseases and medical tourism, is increasing the need for reliable waste management solutions [2] Market Dynamics - **Drivers**: The rapid expansion of healthcare infrastructure globally is increasing waste generation, thereby driving demand for efficient waste management services [4] - **Restraints**: High capital investment requirements for advanced treatment technologies and compliant infrastructure can slow adoption, particularly for smaller providers [5] - **Opportunities**: Growing awareness programs in developed economies are improving compliance and reducing mishandling risks [6] - **Challenges**: Limited awareness and infrastructure in developing countries hinder the adoption of modern waste management practices [7] Service and Waste Type Insights - Collection, transportation, and storage services accounted for the largest market share in 2022, reflecting improved perceptions of waste management's role in healthcare [8] - Non-hazardous waste represented the largest market share in 2022, driven by an increase in healthcare procedures and revised regulations [8] - Hospitals and diagnostic laboratories are the largest and fastest-growing segments in the market [9] Regional Outlook - North America is the largest regional market for medical waste management, supported by advanced healthcare infrastructure and stringent regulations [10] - The Asia Pacific region is projected to register the highest growth rate, driven by improving healthcare facilities and increased medical tourism [10] Competitive Landscape - The market is led by established players such as Veolia Environnement S.A., Clean Harbors, Inc., and Stericycle Inc., which have extensive service portfolios and strong distribution networks [11][12] - Veolia's acquisition of Suez Environnement's hazardous waste assets in 2022 expanded its service portfolio [12] Recent Developments - Medical waste management is increasingly viewed as a strategic lever for regulatory compliance, cost optimization, and sustainability leadership [13] - Organizations investing in advanced waste management solutions are better positioned for long-term growth and brand protection [13]

Core Insights - The company has achieved approximately 500 basis points of margin improvement over the last 5 years and about 800 basis points over the last 8 years, indicating strong financial performance [1] Group 1 - The company has a diverse range of assets that allow it to manage various types of waste streams effectively [1] - There has been an increase in volumes processed through the company's network, attributed to strategic initiatives [1]